Library sales to backfire: Council cutbacks could be hampered by 150-year-old law

Local councils considering selling off their libraries and museums could be halted by a little-known Victorian law, it has emerged.

Hundreds of British libraries are thought to be under threat as local authorities are forced to reduce their budgets as a result of government cuts to public services.

But the sales could be worthless due to an 150-year-old law that means profits must be returned to the original landowners.

Facing closure? Many local councils are planning to sell their libraries but could be forced to give the profits away, due to an obscure Victorian law

The Literary and Scientific Institutions Act of 1854 was introduced to encourage Britain’s wealthiest families into giving their lands to charity to boost surrounding areas.

But the letter of the law could prevent councils from earning money from selling off their assets, according to property advisory firm DTZ.

Rebekah Formosa, a consultant at the company, told the Financial Times: ‘There was one specific stipulation set by the benefactors: should the land cease to be used for the purposes specified at the time of granting it, a reverter clause would kick in, meaning the land would be transferred back to its original owner.’

It is believed over 400 libraries and at least 65 mobile libraries are under threat of closure amid council budget cuts.

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Hundreds of thousands of people marched in London last weekend in protest against cuts to public services, though the peaceful demonstration was marred by anarchist violence elsewhere.

The number of council buildings that are protected by the Literary and Scientific Institutions Act is not yet known but the law could potentially cost authorities huge sums, Ms Formosa said.

‘The widespread practice of selling museums and libraries could derive revenue savings but from a capital perspective it could prove to be a costly mistake,’ she added.

A Victorian law has stood in the path of a property sale before, with the Church of England forced to give up profits to the descendants of a landowner after selling a Kent school in 2005.

The church sold a school in the St Philip’s parish of Canterbury in 2005 only to find the deeds to the land included a reverter clause from the School Sites Act of 1841 and proceeds from the sale had to returned to the original landowner’s 18 living relatives.

Mass movement: A sea of banners, flags and placards as trade union members, students and public sector workers protest against the public sector budget cuts as they march in central London on March 26